Cellmid to acquire Advangen

This acquisition will give Cellmid ownership to the FGF-5 inhibitor hair growth technology, which is presently owned by Advangen, and also increase considerably Cellmid’s revenues in the short to medium term.

As per the agreed terms, Cellmid will by out 100% of Advangen’s shares of in a deal worth JPY120M (AU$1.2M) in cash and the issuing of 55,737,624 shares at a nominal issue price of 5 cents each.

The acquisition will also provide Cellmid immediate access to the established Japanese hair growth market, apart from new market opportunities including in China where import permits are already in place for the Lexilis and Jo-Ju branded products.

Besides, it will improve the profitability of évolis sold in Cellmid’s existing markets as there will no longer be royalties’ payable, and it will save the company costs of raw materials of the active ingredients.

Advangen’s product development expertise in the hair growth sector will allow Cellmid’s own initiative to develop midkine as a hair loss treatment.

Japanese institutional investors Biotech Healthcare No.1 Limited Partnership and bhp No.2 Investment Limited Partnership, who are the present owners of Advangen will be issued Cellmid shares as part of the transaction.

Cellmid CEO Maria Halasz welcomed it as a company changing deal.

"Our objective is to establish Cellmid as a global leader in scientifically and clinically validated hair growth technology. We plan on generating substantial revenues in the next three to five years," said Halsaz.

The market for hair loss products is said to be about $1-2bn a year in the USA alone, while the global market is expected to be several times this amount.